Far East must also try to redeem their reputation as passenger-carriers. It is true that passengers have not paid in the past, and that the German mails, which have lately monopolised this traffic have been practically running at a loss. But in very few years passengers will pay, and to those that have shall be given. And the Pacific should be exploited far more in the future than it has been in the past by British ship-owners. From the Pacific sea-board an increasing commerce with the East will soon be directed, and although the "American lake" has had its character much changed by the events of the past few months, there is no reason why the Red Ensign should not be seen much more in these waters than it is at present. English commercial travellers should also come out to the Far East and understand exactly what is wanted. Certain manufacturing houses, whose names need not be divulged, have made much money in Japan since the war by having competent men on the spot able and willing to attend to business. But more people must come out; there must be more movement, more interest, and more capacity to execute rapidly heavy contracts. It is stated authoritatively that much money has been lost in England by manufacturers being physically unable to execute the heavy orders which have been placed owing to the exceptional Eastern demand. This should not occur again. In the Far East itself, commercial houses should at last recognise the fact that it is necessary to have men who have some knowledge

of Far Eastern languages, and that a premium should be offered to those who, for instance, are willing to acquire a working knowledge of Chinese. It is absolutely essential that Europeans should very soon be able to deal direct with Chinese without the help of Chinese middlemen. That the compradore system can be easily upset, it would be of course absurd to state; but there is no reason why efforts should not be made to enter into more intimate intercourse with Chinese traders and bankers. A hundred words of Chinese give one an insight into a few things; and fifteen hundred are all that are required to place men in an exceptional position. This is a point to which attention should be directed. In twenty years' time, Chinese trade will be twice as great as it is now; in fifty years it will be portentEveryone who can do so would do well to come out to the Far East and see the magnificent opportunities for the investment of money which will offer once the British Government has taken action; to see what British enterprise has already succeeded in accomplishing. A time of sharp competition is coming, and it would be well if capitalists, ship-owners, merchants, and speculators tried to understand the new conditions, and to accommodate themselves to the new requirements. The old Far East is rapidly passing away, and the new Far East is being built up. Believing as I do that Englishmen and Chinese, at heart the two most conservative peoples in the world, have much in commoneach highly respecting the other's commercial in

ous.

tegrity-the next five or ten years will show whether we are to retain the lion's share of what will soon be an immense commerce or whether we are to be effaced by others. The true opening of China must be effected at all costs as one of the 'greatest results of the war. A little courage, a little perseverance,

and a little sound common sense are all that are needed for the time being; the rest will come by itself.

But above all it is necessary to see with one's own eyes, and to act quickly before the East sinks to sleep again. Therefore, after the war, a great concourse should stream Eastwards to examine the countries that have been such a wonder and to understand that there should be no longer any pessimism. If this is done it will bring profit and honour to all, for China is now as potter's clay and kind hands can mould her to any shape.

APPENDICES

A. TREATY OF SHIMONOSEKI, BY WHICH SOUTHERN MANCHURIA WAS CEDED TO JAPAN

(Signed April 17, 1895; ratified at Chefoo, May 8, 1895.)

Article I. China recognises definitely the full and complete independence and autonomy of Korea, and in consequence the payment of tribute and the performance of ceremonies and formalities by Korea to China in derogation of such independence and autonomy shall wholly cease for the future.

Article II. China cedes to Japan in perpetuity and full sovereignty the following territories, together with all fortifications, arsenals, and public property thereon:

(a). The southern portion of the province of Feng-t'ien within the following boundaries:

The line of demarcation begins at the mouth of the river Yalu and ascends that stream to the mouth of the river Anping; from thence the line runs to Feng Huang; from thence to Haicheng; from thence to Ying-Kow, forming a line which describes the southern portion of the territory. The places above named are included in the ceded territory. When the line reaches the river Liao at Ying-Kow it follows the course of that stream to its mouth, where it terminates. The mid-channel of the river Liao shall be taken as the line of demarcation.